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SMEs almost five times more likely than large firms to take on new staff

Small and medium-sized enterprises (SMEs) are almost five times as likely as larger firms to employ new staff members next quarter, according to a new report.

The report from the Chartered Institute of Personnel and Development (CIPD) reveals that workplace growth can cause problems for smaller businesses though. Some 77 per cent of small business decision makers believe that success is linked to the firm sticking to its vision and values, reports freshbusinessthinking.com. A further 79 per cent say they will need to focus on these things as the company takes on more staff.

The CIPD also shows that its quarterly net employment balance index is up ten points compared to three months earlier, meaning it now sits at 26. The index measures the difference between firms who are planning to take on new staff and companies thinking of cutting down their workforce. It’s now at its highest level since 2007 and it’s believed that confidence in the services sector is driving the rise, reports thisismoney.co.uk.

Official employment figures will be released later this week (May 14) and economists predict that unemployment figures will decline yet again from 6.9 per cent to 6.8 per cent. It is also believed that average earnings will have gone up by two per cent in the first quarter, in comparison to the same period the previous year.